The Era of Generative AI and Intelligent Automation in Transfer Pricing

We are witnessing an unprecedented shift in the global business landscape, driven by the acceleration of Generative AI and intelligent automation. These technologies are not merely tools, they are reshaping how businesses create, deliver and measure value. In this evolving scenario, Transfer Pricing (TP), the backbone of cross-border inter-company transaction regulation, faces a critical need to evolve.

AI in the Service of TP Compliance

AI is not just a challenge; it’s also a powerful tool for TP compliance, as given below:

  • Natural Language Generation (NLG) can draft tailored local files, intercompany agreements and risk summaries with improved accuracy.
  • AI-driven analytics can simulate transfer pricing outcomes, evaluate scenario-based risk exposure and benchmark intangibles through pattern recognition.
  • Machine Learning models can detect outlier pricing in intercompany transactions, helping preempt scrutiny.

Firms using AI for proactive compliance will likely benefit from reduced audit risks and faster documentation cycles.

Some of the AI Tools Used in Transfer Pricing & Tax Compliance

ONESOURCE TP (Thomson Reuters)
AI features for report generation and risk analysis.

  • Alteryx
    Used in tax teams to prepare data for AI-driven TP models.
  • TP Catalyst
    Benchmarking with Indian and global comparables, Assisting in Local File/TP Study report generation
  • ChatGPT (OpenAI) + Excel/ERP Integration
    Can automate and standardize reporting when integrated with internal systems.

To know more check the link below-

https://uja.in/blog/transfer-pricing/generative-ai-and-intelligent-automation-in-transfer-pricing/

Comments

Post a Comment

Popular posts from this blog

Upcoming Tax Changes for 2025

Image
As we approach 2025, various proposed tax changes are on the horizon that could significantly impact individual taxpayers and businesses. While some of these changes are still in the discussion phase, understanding them now can help you plan effectively for the upcoming tax year. Understanding the Basics of International Taxation: - i. Standard Deduction Adjustments One of the anticipated changes is an increase in the standard deduction amounts. While specific figures have yet to be finalized, adjustments are likely based on inflation. This could provide taxpayers with greater relief and simplify the filing process for those who do not itemize. ii. Changes to Tax Brackets The IRS typically adjusts tax brackets annually to account for inflation. Taxpayers should be aware of potential changes in income thresholds for various tax rates, which could impact how much tax you owe based on your income level. iii. Corporate Tax Rates There is ongoing discussion about revisiting corporate tax ra...
Read more

An Analysis on the Prevention of Sexual Harassment ACT, 2013

Image
  The   Prevention of Sexual Harassment   Act, 2013   is a piece of legislation that was introduced to establish and offer a safe and respectful work environment for women. The main objective of the   POSH   Act is to create awareness, proactive measures, and a fair and confidential grievance redressal process for aggrieved women who are subject to any kind of harassment at the workplace. Important Provisions Under The Act Formation of Internal Committee : Under the  POSH  Act, organizations with more than 10 employees are required to constitute an internal committee to act as a redressal mechanism for the aggrieved parties under the act. The committee is composed of a chairperson who must be a senior-level female employee in an organization, at least two other employees, and one external member with expertise in the field of sexual harassment or a social worker working for the cause of women. Powers of Internal Committee : The Prevention of Workp...
Read more

Taxation of Bitcoins and Cryptocurrencies in 2025

Image
  Cryptocurrencies like Bitcoin have become increasingly popular as both investments and means of transaction. However, their tax treatment can be complex. Understanding how cryptocurrencies are taxed is crucial to staying compliant and avoiding potential penalties. Here’s a comprehensive guide to how Bitcoin and other cryptocurrencies are taxed in 2025. In India, the taxation of Bitcoin and other virtual digital assets (VDAs) is primarily governed under Section 115BBH of the Income Tax Act, 1961, which was introduced in the Finance Act 2022. This section and its provisions outline the tax treatment of income arising from the transfer of virtual digital assets, including cryptocurrencies like Bitcoin. To know more blog insights, check the link-  https://uja.in/blog/taxation-times/taxation-of-bitcoins-and-cryptocurrencies-in-2025/ Want to more tax related latest update, give us a visit-  https://uja.in/blog/taxation-times/
Read more